As of about 9:45 AM IST (04:15 GMT), Friday 6 November 2026. Market levels move quickly; figures are as reported by AP, CNBC, Reuters and Investing.com for the Thursday US close and Friday Asian session.
US stocks suffered their worst day since April 2025 on Thursday 5 November, led by artificial-intelligence and chip shares, and Asia’s tech-heavy markets deepened the sell-off on Friday. The Nasdaq Composite fell 5.5% into a correction—more than 10% below its recent high—while the S&P 500 dropped 4.4% and the Dow Jones Industrial Average lost about 1,833 points, or 3.4%, AP and CNBC reported.
Investors linked the move to Democratic midterm gains that raised expectations of tighter scrutiny of data-centre build-outs, on top of existing worries about AI returns, heavy capital spending and higher borrowing costs.
How deep the damage went
- Roughly $3 trillion was wiped from S&P 500 companies’ market value in the session, Reuters reported.
- The Philadelphia Semiconductor Index slumped about 12%, described as its second-biggest one-day fall on record in market briefings.
- Nvidia fell more than 9%; AMD, Micron and other chip names posted double-digit percentage losses in Thursday trading, CNBC reported.
- All 11 S&P 500 sectors closed lower.
Asia follows overnight
On Friday morning in Asia, Japan’s Nikkei sank as much as about 7% after the open and South Korean and Taiwanese benchmarks dropped more than 8% before some dip-buying emerged, Reuters reported. Samsung Electronics and SK Hynix fell nearly 10% and 12%; Kioxia plunged about 14%; TSMC fell as much as 8.5%. SoftBank Group slid about 11%, and the cost of insuring SoftBank debt jumped to a four-year high, according to the same report.
CNBC said South Korea’s Kospi plunged more than 6% and the Nikkei 225 dropped about 5.9% into bear-market territory in Friday trading as of its live updates. European futures trimmed early losses; Nasdaq futures briefly pointed higher even as sentiment stayed fragile.
Why politics mattered this week
Democrats’ sweep of Congress—and wins in states where opposition to new data centres has grown—pushed traders to price a slower AI infrastructure boom. That hit an AI trade already strained by questions about when huge capital budgets will turn into durable profits. “Neocloud” names such as CoreWeave, watched as a barometer of leveraged AI spending, fell further and saw credit-default swap spreads widen to records, Reuters reported.
Flight to bonds and the yen
As equities sold off, investors moved into haven assets. The 10-year US Treasury yield fell toward about 4.84%, near its lowest since early September, while the two-year yield dropped to around 4.47%, Reuters and CNBC reported. The yen strengthened and the Swiss franc firmed; the dollar index was roughly flat near 101.55 in Asian hours on Friday.
Fed funds futures scaled back the probability of a 25-basis-point December rate hike to around 70% from more than 80% earlier in the week, traders told Reuters. Some rates desks pushed the next fully priced hike toward March.
Payrolls are the next catalyst
Friday’s US October nonfarm payrolls report is the immediate focus. Economists polled by Dow Jones expected about 59,000 jobs added and an unemployment rate holding at 4.2%. Thursday’s weekly jobless claims fell to a seasonally adjusted 189,000, matching a 57-year low reached in July and beating forecasts, Reuters reported—an upbeat labour signal heading into the payrolls print.
A stronger jobs number could revive rate-hike bets and pressure both bonds and richly valued tech; a softer print could extend the bond rally even if equity volatility stays high.
Oil and the wider tape
Separate from the AI rout, energy markets remained sensitive to the unresolved Gulf conflict. Brent crude had already swung sharply this week on diplomacy hopes and tanker incidents near the Strait of Hormuz; midterm-related risk-off flows added another layer of volatility for global portfolios that had been long both tech and oil-linked inflation hedges.
What analysts are saying
Some strategists described the selling as partly mechanical—leveraged positions unwinding at once—while others argued AI valuations had priced an overly smooth build-out. A few Asian traders said limit-down moves in heavyweights such as TSMC often mark late-stage capitulation, though that is not a guarantee of a durable bottom.
Related on HorizonDesk
- Asian stocks fall Nov 4: Nikkei drops 3.6%
- US midterms 2026: Democrats win Congress
- Nasdaq’s worst month since March 2025
- Fed holds rates; Wall Street and Asia react
- Gartner on AI infrastructure write-down risk
Disclaimer: This article is for general information only and is not financial or investment advice. Markets are volatile and past performance does not guarantee future results. Do your own research or consult a qualified financial adviser before making investment decisions.
